Simple Bargaining Experiments In An Introductory Economics Course

Abstract

Little research in experimental economics has been done to test whether a participant's knowledge about economic theory is correlated to results often observed in simple bargaining games. Using results of an ultimatum bargaining game regularly used as a teaching tool in an introductory economics course, this paper shows that students who have a better understanding of economic theory generally make choices predicted by economic theory. As a consequence, classroom experiments of this kind can be used as a tool for student evaluation and for instructor information about the level of understanding achieved by students. (A22, C70)